IKEA targets 49 mega stores across metros

In a major boost to the infrastructure sector, the world's largest furniture retailer, IKEA, after readying its first store in Hyderabad stretching over an area of 4 lakh sq ft in the up market Cyberabad, has chalked out an ambitious plan targeting 49 large cities to set up such big-format stores. It is currently also exploring the setting up of smaller stores, increasing local sourcing to 50 per cent and bringing in technology as it has already secured nod to open 25 stores with an investment of around ₹1,000 crore per store involving a combined investment of ₹25,000 crore in the next 10 years. Among others, The Hyderabad store will have a 1,000-seater restaurant. The next IKEA store would come up in Mumbai early next year for which it has tied up with logistics major Gati, said MD, IKEA, Peter Betzel John Achillea, adding that IKEA would offer online shopping and open up multichannel transactions post the launch of the Mumbai store. Its emphasis will be on experiential shopping at stores to a transition to online in the future. The need for online shopping is growing in home furnishings and in score of countries it accounts for 6-10 per cent of the total sales.